Bill Text: HI HB626 | 2018 | Regular Session | Amended

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Bill Title: Relating To Urban Redevelopment.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2017-11-30 - Carried over to 2018 Regular Session. [HB626 Detail]

Download: Hawaii-2018-HB626-Amended.html

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HOUSE OF REPRESENTATIVES	H.B. NO.	626
TWENTY-NINTH LEGISLATURE, 2017		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO URBAN REDEVELOPMENT.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

STATE TRANSIT ORIENTED DEVELOPMENT

     §   -1  Findings and purpose.  The legislature finds that the State has a unique opportunity to address economic diversification and affordable housing shortages through transit-oriented development.  However, despite being one of the largest landowners along the rail transit stations, the State has yet to formulate a master plan to develop these parcels so that they are transit-ready.

     Prior to any redevelopment efforts, it is necessary to increase all infrastructure capacity along the transit corridor, especially around each of the twenty rail transit stations.  In preparation for the completion of the Honolulu rail transit project, the State must maximize the opportunities for the development of land around rail transit stations, thereby supporting the local economy, improving access to transportation, and increasing rail ridership.

     Recognizing the need for a focused effort on building infrastructure capacity to support redevelopment efforts at each of the rail transit stations and avoiding the need to create another government entity, the purpose of this chapter is to create the state transit oriented development authority, to plan and develop infrastructure capacity, pursuant to this chapter, at each of the rail transit stations that will support the planned growth and density at each of the rail transit stations.

     Moreover, the purpose of this chapter is to focus on rail transit stations that are adjacent to state-owned lands.  The authority shall plan and develop infrastructure to service lands within a half-mile radius from one of the following rail transit stations: University of Hawaii, West Oahu campus, transit station; Leeward community college transit station; Aloha Stadium transit station; Kalihi transit station; and Iwilei transit station.

     Furthermore, to facilitate the investment of private capital in public infrastructure, this chapter encourages the authority to enter into public-private partnerships established through a lease-back arrangement between the authority and private investors.

     The legislature further finds that there exists within the State vast, unmet state transit oriented development needs.  These include but are not limited to a lack of suitable affordable housing; insufficient commercial and industrial facilities for rent; residential areas that do not have facilities necessary for basic livability, such as parks and open space; and areas that are planned for extensive land allocation to a single use, rather than mixed uses.

     The legislature further determines that the lack of planning and coordination in such areas has given rise to these state transit oriented development needs and that existing laws and public and private mechanisms have proven either incapable or inadequate to facilitate timely redevelopment.

     The legislature finds that a new and comprehensive authority must be created to join the strengths of private enterprise, public development, and regulation into a new form capable of long-range planning and implementation of the improved development of State-owned assets near rail transit stations.  The purpose of this chapter is to establish such a mechanism in the state transit oriented development authority, a public entity that shall determine development programs and cooperate with private enterprise and the various components of federal, state, and county governments in bringing plans to fruition.

     For such areas designated as state transit oriented development districts, the legislature determines that the planning and implementation program of the state transit oriented development authority will result in communities that serve the highest needs and aspirations of Hawaii's people.

     The legislature finds that the creation of the state transit oriented development authority, the establishment of state transit oriented development districts, and the issuance of bonds pursuant to this chapter to finance public facilities, serve the public interest and are matters of statewide concern.  In coordinating state transit oriented development, the authority shall plan for mixed-use districts in which industrial, commercial, residential, and public uses may coexist compatibly within the same area.

     §   -2  Definitions.  As used in this chapter:  "Authority" means the state transit oriented development authority established by section    -3.

     "Commercial project" means an undertaking involving commercial or light industrial development, which includes a mixed use development in which commercial or light industrial facilities may be built into, adjacent to, under, or above residential units.

     "County" means any county of the State.

     "Local governing body" means the county council of any county of the State.

     "Project" means a specific work or improvement, including real and personal properties, or any interest therein, acquired, owned, constructed, reconstructed, rehabilitated, or improved by the authority, including a residential project, a redevelopment project, or a commercial project, all as defined herein, or any combination thereof, which combination shall hereinafter be called and known as a "mixed use project".

     "Project cost" means the total of all costs incurred by the authority in carrying out all undertakings that it deems reasonable and necessary for the development of a project including but not limited to:  studies; surveys; plans; specifications; architectural, engineering, or any other development-related services; acquisition of land and any improvement thereon; site preparation and development; construction; reconstruction; rehabilitation; the necessary expenses in administering this chapter; the cost of financing the project; and relocation costs.

     "Public agency" means any office, department, board, commission, bureau, division, public corporation agency, or instrumentality of the federal, state, or county government.

     "Public facilities" includes streets, utility and service corridors, and utility lines where applicable, sufficient to adequately service developable improvements in the district; sites for schools, parks, parking garages, sidewalks, and pedestrian ways; and other community facilities.  "Public facilities" also includes public highways, as defined by statute, storm drainage systems, water systems, street lighting systems, off-street parking facilities, and sanitary sewerage systems.

     "Qualified person" includes any individual, partnership, corporation, or any public agency, possessing the competence, expertise, experience, and resources, including financial, personnel, and tangible resources, required for the purposes of the project and such other qualifications as may be deemed desirable by the authority in administering this chapter.

     "Real property" means lands, structures, and interests in land, including lands under water and riparian rights, space rights, and air rights and any and all other things and rights usually included within the term.  "Real property" also means any and all interests in such property less than full title, such as easements, incorporeal hereditaments, and every estate, interest, or right, legal or equitable, including terms for years and liens thereon by way of judgments, mortgages, or otherwise.

     "Redevelopment project" means an undertaking for the acquisition, clearance, planning, reconstruction, and rehabilitation or a combination of these and other methods, of an area for a residential project, for a commercial project, and for other facilities appurtenant thereto, pursuant to and in accordance with this chapter.  The terms "acquisition, clearance, planning, reconstruction, and rehabilitation" shall include renewal, redevelopment, conservation, restoration, or improvement, or any combination thereof.

     "Residential project" means a project or that portion of a mixed use project, including residential dwelling units, designed and intended for the purpose of providing housing and such facilities as may be incidental or appurtenant thereto.

     §   -3  State transit oriented development authority; established.  (a)  There is established the state transit oriented development authority, which shall be a body corporate and a public instrumentality of the State, for the purpose of implementing this chapter.  The authority shall be placed within the department of business, economic development, and tourism for administrative purposes.

     (b)  The authority shall consist of the director of finance, or the director's designee; the director of transportation, or the director's designee; each county director of planning and permitting, or the applicable county director's designee; a private developer with experience in developing affordable housing projects in Hawaii; an at-large member; an at-large member nominated by the president of the senate; and an at-large member nominated by the speaker of the house of representatives.  All members, except the director of finance, director of transportation, and county directors of planning and permitting, or their designees, shall be appointed by the governor pursuant to section 26-34.  The two at-large members nominated by the president of the senate and speaker of the house of representatives shall each be appointed by the governor from a list of three nominees submitted for each position by the president of the senate or speaker of the house of representatives, as applicable.

     (c)  The following members of the authority shall constitute a quorum and majority and shall be eligible to vote:

     (1)  The director of finance, or the director's designee;

     (2)  The director of transportation, or the director's designee;

     (3)  The private developer with experience in developing affordable housing projects in Hawaii; and

     (4)  The three at-large members;

provided that the director of planning and permitting of each county or the director's designee, as applicable, shall participate in these matters as an ex officio, nonvoting member and shall not be considered in determining quorum and majority.

     (d)  In the event of a vacancy, a member shall be appointed to fill the vacancy in the same manner as the original appointment within thirty days of the vacancy or within ten days of the senate's rejection of a previous appointment, as applicable.

     (e)  The terms of the director of finance, director of transportation, county directors of planning and permitting, or their respective designees shall run concurrently with each official's term of office.  The terms of the appointed voting members shall be for four years, commencing on July 1 and expiring on June 30.

     (f)  The governor may remove or suspend for cause any member of the authority after due notice and public hearing.

     (g)  Notwithstanding section 92-15, a majority of all eligible voting members as specified in this section shall constitute a quorum to conduct business, and the concurrence of a majority of all eligible voting members as specified in this section shall be necessary to make any action of the authority valid.  All members shall continue in office until their respective successors have been appointed and qualified.  Except as herein provided, no member appointed under this section shall be an officer or employee of the State or a county.

     (h)  The authority shall appoint an executive director, who shall serve as the chief executive officer of the authority.  The authority shall set the salary of the executive director, who shall serve at the pleasure of the authority and shall be exempt from chapter 76.

     (i)  The authority shall annually elect the chairperson and vice chairperson from among its members.

     (j)  The members of the authority shall serve without compensation, but each shall be reimbursed for expenses, including travel expenses, incurred in the performance of their duties.

     §   -4  Powers; generally.  The authority may:

     (1)  Sue and be sued;

     (2)  Have a seal and alter the same at pleasure;

     (3)  Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter;

     (4)  Make and alter bylaws for its organization and internal management;

     (5)  Make rules with respect to its projects, operations, properties, and facilities, which rules shall be in conformance with chapter 91;

     (6)  Through its executive director, appoint officers, agents, and employees; prescribe their duties and qualifications; and fix their salaries, without regard to chapter 76;

     (7)  Prepare or cause to be prepared a state transit oriented development plan for all designated state transit oriented development districts;

     (8)  Acquire, reacquire, or contract to acquire or reacquire by grant or purchase real, personal, or mixed property or any interest therein; to own, hold, clear, improve, and rehabilitate, and to sell, assign, exchange, transfer, convey, lease, or otherwise dispose of or encumber the same;

     (9)  Acquire or reacquire by condemnation real, personal, or mixed property or any interest therein for public facilities, including but not limited to streets, sidewalks, parks, schools, and other public improvements;

    (10)  By itself, or in partnership with qualified persons, acquire, reacquire, construct, reconstruct, rehabilitate, improve, alter, or repair or provide for the construction, reconstruction, improvement, alteration, or repair of any project; own, hold, sell, assign, transfer, convey, exchange, lease, or otherwise dispose of or encumber any project, and in the case of the sale of any project, accept a purchase money mortgage in connection therewith; and repurchase or otherwise acquire any project that the authority has theretofore sold or otherwise conveyed, transferred, or disposed of;

    (11)  Arrange or contract for the planning, opening, grading, or closing of streets, roads, roadways, alleys, or other places, or for the furnishing of facilities or for the acquisition of property or property rights or for the furnishing of property or services in connection with a project;

    (12)  Grant options to purchase any project or to renew any lease entered into by it in connection with any of its projects, on terms and conditions as it deems advisable;

    (13)  Prepare or cause to be prepared plans, specifications, designs, and estimates of costs for the construction, reconstruction, rehabilitation, improvement, alteration, or repair of any project, and from time to time, to modify the plans, specifications, designs, or estimates;

    (14)  Provide advisory, consultative, training, and educational services, technical assistance, and advice to any person, partnership, or corporation, either public or private, to carry out the purposes of this chapter, and engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

    (15)  Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable;

    (16)  Contract for and accept gifts or grants in any form from any public agency or from any other source; and

    (17)  Do any and all things necessary to carry out its purposes and exercise the powers given and granted in this chapter.

     §   -5  Assignment of powers and duties prohibited.  The authority shall not assign to any person or agency, including the executive director of the authority, any of its powers and duties related to the approval of any variance, exemption, or modification of any provision of a state transit oriented development plan or state transit oriented development rules.

     §   -6  Designation of state transit oriented development districts.  (a)  The legislature may designate an area as a state transit oriented development district if it determines that there is need for planning, renewal, or redevelopment of that area.  The designation shall describe the boundaries of the district.

     (b)  After designation pursuant to subsection (a), the authority shall develop a state transit oriented development plan for the designated district.  The plan shall include but not be limited to state transit oriented development guidance policies, district-wide improvement programs, and state transit oriented development rules.

     (c)  The authority may enter into cooperative agreements with qualified persons or public agencies, where the powers, services, and capabilities of the persons or agencies are deemed necessary and appropriate for the development of the state transit oriented development plan, and include, at a minimum, the following:

     (1)  Determining how to optimize the amount of workforce and affordable housing in each district;

     (2)  Determining how to optimize public facilities, including schools, parks, libraries, and other public facilities in each district;

     (3)  Identifying the need for infrastructure capacity building to support the planned density at the rail transit stations, and various alternatives on how the infrastructure could be financed; and

     (4)  Providing an economic model that would illustrate development or redevelopment opportunities with projected returns to public or private investors and the overall economic benefit in new taxes from jobs, businesses, real property taxes, and other factors.

     (d)  Whenever possible, planning activities of the authority shall be coordinated with federal, state, and county plans.  Consideration shall be given to state goals and policies, adopted state plan or land use guidance policies, county general plans, development plans, and ordinances.

     (e)  The authority shall hold a public hearing on a proposed state transit oriented development plan pursuant to chapter 91 and shall, after consideration of comments received and appropriate revision, submit the state transit oriented development plan to the governor for the governor's approval.

     (f)  After the approval pursuant to subsection (e), the governor shall submit to the legislature requests for appropriations, authorization to issue bonds, or both, to implement the state transit oriented development plan in an orderly, affordable, and feasible manner.

     The governor shall submit the requests to the legislature as part of the biennial budget or supplemental budget, as appropriate.  In addition to the information, data, and materials required under chapter 37, the requests shall be accompanied by:

     (1)  Plans, maps, narrative descriptions, and other appropriate materials on the:

         (A)  Locations and design of projects or public facilities proposed to be funded; and

         (B)  Phase of the state transit oriented development plans proposed to be implemented with the requested funds; and

     (2)  Other information deemed by the governor to be of significance to the legislature regarding the projects or public facilities proposed to be funded, including a discussion of the public benefits intended by, and adverse effects which may result from, implementation of the projects or public facilities.

     (g)  The authority may amend the state transit oriented development plan as may be necessary.  Amendments shall be made in accordance with chapter 91.

     §   -7  Community and public notice requirements; posting on the authority's website; required.  (a)  The authority shall adopt community and public notice procedures pursuant to chapter 91 that shall include, at a minimum:

     (1)  A means to effectively engage the community in which the authority is planning a development project to ensure that community concerns are received and considered by the authority;

     (2)  The posting of the authority's proposed plans for development of state transit oriented development districts, public hearing notices, and minutes of its proceedings on the authority's website;

     (3)  The posting of every application for a development permit for any project within a state transit oriented development district on the authority's website when the application is deemed complete;

     (4)  Notification by the applicant of any application for a development permit for a project valued at $250,000 or more by first-class mail, postage prepaid, to owners and lessees of record of real property located within a three-hundred-foot radius of the perimeter of the proposed project identified from the most current list available from the real property assessment division of the department of budget and fiscal services of the county in which the proposed project is located, when the application is deemed complete; provided that notice mailed pursuant to this paragraph shall include but not be limited to notice of:

          (A)  Project specifications;

         (B)  Requests for variance, exemption, or modification of a state transit oriented development plan or the authority's state transit oriented development rules; and

         (C)  Procedures for intervention and a contested case hearing; and

     (5)  Any other information that the public may find useful so that it may meaningfully participate in the authority's decision-making processes.

     (b)  The authority shall notify the president of the senate and speaker of the house of representatives:

     (1)  Of any public hearing upon posting of the hearing notice; and

     (2)  With a written report detailing the public's reaction at the public hearing, within one week after the hearing.

     §   -8  Public hearing for decision-making; separate hearings required; contested case hearing; judicial review.  (a)  When rendering a decision regarding:

     (1)  An amendment to any of the authority's state transit oriented development rules established pursuant to chapter 91 and section    -10; or

     (2)  The acceptance of a developer's proposal to develop lands under the authority's control,

the authority shall render its decision at a public hearing separate from the hearing at which the proposal under paragraph (1) or (2) was presented.

     (b)  The authority shall issue a public notice in accordance with section    -7 and post the notice on its website; provided that the decision-making hearing shall not occur earlier than five business days after the notice has been posted.  Public notice issued pursuant to this subsection for public hearings on the acceptance of a developer's proposal to develop lands under the authority's control shall state that any written motion to intervene as a formal party to the proceeding shall be received within twenty days after the publication date of the public notice.

     (c)  Prior to rendering a decision, the authority shall provide the public with the opportunity to testify at its decision-making hearing; provided that members of the public who are not intervenors in the proceeding shall not be considered formal parties to the proceeding.

     (d)  The authority shall notify the president of the senate and speaker of the house of representatives:

     (1)  Of any public hearing upon posting of the hearing notice; and

     (2)  With a written report detailing the public's reaction at the public hearing, within one week after the hearing.

     (e)  When considering any developer's proposal to develop lands under the authority's control that includes any request for a variance, exemption, or modification of a state transit oriented development plan or of the authority's state transit oriented development rules, the authority shall consider the request for variance, exemption, or modification at a public hearing, noticed in accordance with section    -7, separate from and subsequent to the hearing at which the developer's proposal was presented; provided that the authority may consider all requests applicable to a single proposal at the same public hearing.  The authority's decision on requests subject to this subsection shall be rendered at the decision-making hearing on the developer's proposal.

     (f)  No final decision of the authority on a developer's proposal shall be issued until after all proceedings required by this section are finally concluded.

     (g)  Proceedings regarding the acceptance of a developer's proposal to develop lands under the authority's control shall be considered a contested case hearing.

     (h)  Any party aggrieved by a final decision of the authority regarding the acceptance of a developer's proposal to develop lands under the authority's control may seek judicial review of the decision within thirty days, pursuant to section 91-14.

     (i)  The authority shall not approve any developer's proposal to develop lands under the authority's control, unless the authority finds that the proposed development project is reasonable and is consistent with the development rules and policies of the relevant state transit oriented development district.  In making its finding pursuant to this subsection, the authority shall consider:

     (1)  The extent to which the proposed project:

         (A)  Advances the goals, policies, and objectives of the applicable district plan;

         (B)  Protects, preserves, or enhances desirable neighborhood characteristics through compliance with the standards and guidelines of the applicable district rules;

         (C)  Avoids a substantially adverse effect on surrounding land uses through compatibility with the existing and planned land use character of the surrounding area; and

         (D)  Provides housing opportunities for all income groups, particularly low-, moderate-, and other qualified income groups;

     (2)  The impact of the proposed project on the following areas of urban design, as applicable:

         (A)  Pedestrian oriented development, including "complete streets" design;

         (B)  Transit oriented development, including rail, bus, and other modes of rapid transit; and

         (C)  Community amenities such as gathering places, community centers, culture and arts facilities, and the full array of public facilities normally provided by the public sector;

     (3)  The impact of the proposed project on the following areas of state concern:

         (A)  Preservation of important natural systems or habitats;

         (B)  Maintenance of valued cultural, historical, or natural resources;

         (C)  Maintenance of other resources relevant to the State's economy;

         (D)  Commitment of state funds and resources;

         (E)  Employment opportunities and economic development; and

         (F)  Maintenance and improvement of the quality of educational programs and services provided by schools; and

     (4)  The representations and commitments made by the developer in the permit application process.

     §   -9  District-wide improvement program.  (a)  The authority shall develop a district-wide improvement program to identify necessary district-wide public facilities within a state transit oriented development district.

     (b)  Whenever the authority shall determine to undertake, or cause to be undertaken, any public facility as part of the district-wide improvement program, the cost of providing the public facilities shall be assessed against the real property in the state transit oriented development district specially benefiting from the public facilities.  The authority shall determine the areas of the state transit oriented development district that will benefit from the public facilities to be undertaken and, if less than the entire state transit oriented development district benefits, the authority may establish assessment areas within the state transit oriented development district.  The authority may issue and sell bonds in amounts as may be authorized by the legislature to provide funds to finance the public facilities.  The authority shall fix the assessments against real property specially benefited.  All assessments made pursuant to this section shall be a statutory lien against each lot or parcel of land assessed from the date of the notice declaring the assessment until paid and the lien shall have priority over all other liens, except the lien of property taxes and except as provided in section 231-33.  As between liens of assessments, the earlier lien shall be superior to the later lien.

     (c)  Bonds issued to provide funds to finance public facilities shall be secured solely by the real properties benefited or improved, the assessments thereon, or by the revenues derived from the program for which the bonds are issued, including reserve accounts and earnings thereon, insurance proceeds, and other revenues, or any combination thereof.  The bonds may be additionally secured by the pledge or assignment of loans and other agreements or any note or other undertaking, obligation, or property held by the authority.  Bonds issued pursuant to this section and the income therefrom shall be exempt from all state and county taxation, except transfer and estate taxes.  The bonds shall be issued according and subject to the provisions of the rules adopted pursuant to this section.

     (d)  The authority shall assess the real property within an assessment area according to the special benefits conferred upon the real property by the public facilities.  These methods may include assessment on a frontage basis or according to the area of real property within an assessment area or any other assessment method that assesses the real property according to the special benefit conferred, or any combination thereof.  No such assessment levied against real property specially benefited as provided by this chapter shall constitute a tax on real property within the meanings of any constitutional or statutory provisions.

     (e)  The authority shall adopt rules pursuant to chapter 91, and may amend the rules from time to time, providing for the method of undertaking and financing public facilities in an assessment area or an entire state transit oriented development district.  The rules adopted pursuant to this section shall include but are not limited to the following: methods by which the authority shall establish assessment areas; the method of assessment of real properties specially benefited; the costs to be borne by the authority, the county in which the public facilities are situated, and the property owners; the procedures before the authority relating to the creation of the assessment areas by the owners of real property therein, including provisions for petitions, bids, contracts, bonds, and notices; provisions relating to assessments; provisions relating to financing, such as bonds, revolving funds, advances from available funds, special funds for payment of bonds, payment of principal and interest, and sale and use of bonds; provisions relating to funds and refunding of outstanding debts; and provisions relating to limitations on time to sue, and other related provisions.

     (f)  The authority may, in its discretion, enter into any agreement with the county in which the public facilities are located, to implement all or part of the purposes of this section.

     (g)  All sums collected under this section shall be deposited in the Hawaii state transit oriented development revolving fund established by section    -19; except that notwithstanding section    -19, all moneys collected on account of assessments and interest thereon for any specific public facilities financed by the issuance of bonds shall be set apart in a separate special fund and applied solely to the payment of the principal and interest on these bonds; the cost of administering, operating, and maintaining the program; the establishment of reserves; and other purposes as may be authorized in the proceedings providing for the issuance of the bonds.  If any surplus remains in any special fund after the payment of the bonds chargeable against the special fund, it shall be credited to and become a part of the Hawaii state transit oriented development revolving fund.  Moneys in the Hawaii state transit oriented development revolving fund may be used to make up any deficiencies in the special fund.

     (h)  If the public facilities to be financed through bonds issued by the authority may be dedicated to the county in which the public facilities are to be located, the authority shall ensure that the public facilities are designed and constructed to meet county requirements.

     (i)  If it becomes necessary to remove, relocate, replace, or reconstruct public utility facilities, the authority shall establish by rule the allocation of cost between the authority, the affected public utilities, and properties that may specially benefit from such improvement, if any.  In determining the allocation of cost, the authority shall consider the cost allocation policies for improvement districts established by the county in which the removal, relocation, replacement, or reconstruction is to take place.

     §   -10  State transit oriented development rules.  (a)  The authority shall establish state transit oriented development rules under chapter 91 on health, safety, building, planning, zoning, and land use which, upon final adoption of a state transit oriented development plan, shall supersede all other inconsistent ordinances and rules relating to the use, zoning, planning, and development of land and construction thereon.  Rules adopted under this section shall follow existing law, rules, ordinances, and regulations as closely as is consistent with standards meeting minimum requirements of good design, pleasant amenities, health, safety, and coordinated development.  The authority may, in the state transit oriented development plan or by a state transit oriented development rule, provide that lands within a state transit oriented development district shall not be developed beyond existing uses or that improvements thereon shall not be demolished or substantially reconstructed, or provide other restrictions on the use of the lands.

     (b)  Development rights under a master plan permit and master plan development agreement issued and approved by the authority are vested under the state transit oriented development district rules in effect at the time of initial approval by the authority and shall govern development on lands subject to such permit and agreement.

     §   -11  Use of public lands; acquisition of state lands.  (a)  If state lands under the control and management of other public agencies are required by the authority for its purposes, the agency having the control and management of those required lands may, upon request by the authority and with the approval of the governor, convey or lease the lands to the authority upon terms and conditions as may be agreed to by the parties.

     (b)  Notwithstanding subsection (a), no public lands shall be conveyed or leased to the authority if the conveyance or lease would impair any covenant between the State or any county or any department or board thereof and the holders of bonds issued by the State or the county, department, or board.

     (c)  The authority may negotiate lease terms on any lands it controls, with terms and conditions that are deemed to be in the best interest of the State in achieving it goals to develop or redevelop State-owned lands near rail transit stations; provided that the maximum term of an initial lease or lease-back arrangement shall not exceed ninety-nine years.

     §   -12  Developments within special management areas and shoreline setback.  (a)  Notwithstanding chapter 205A, all requests for developments within a special management area and shoreline setback variances for developments on any lands within a state transit oriented development district, for which a state transit oriented development plan has been developed and approved in accordance with section    -6, shall be submitted to and reviewed by the lead agency as defined in chapter 205A.  In state transit oriented development districts for which a state transit oriented development plan has not been developed and approved in accordance with section    -6, parts II and III of chapter 205A shall continue to be administered by the applicable county authority until a state transit oriented development plan for the district takes effect.

     (b)  In the review of such requests, the lead agency shall conform to the following, as deemed appropriate:

     (1)  Applicable county rules adopted in accordance with section 205A-26 for the review of developments within a special management area, except that section 205A-26(2)(C) shall not apply; and

     (2)  Part III of chapter 205A and applicable county rules for the review of developments within the shoreline setback.

     (c)  With the approval of the lead agency, the developments may be allowed without a special management area permit or shoreline setback variance as required by chapter 205A.

     §   -13  Condemnation of real property.  Upon making a finding that it is necessary to acquire any real property for its immediate or future use for the purposes of this chapter, the authority may acquire the property by condemnation pursuant to chapter 101, including property already devoted to a public use.  The property shall not thereafter be taken for any other public use without the consent of the authority.  No award of compensation shall be increased by reason of any increase in the value of real property caused by the designation of a state transit oriented development district or plan adopted pursuant to a designation, or the actual or proposed acquisition, use, or disposition of any other real property by the authority.

     §   -14  Relocation.  (a)  The authority shall adopt rules pursuant to chapter 91 to ensure the appropriate relocation within or outside the district of persons, families, and businesses displaced by governmental action within the district.  The rules may include but are not limited to the establishment and operation of a central relocation office; relocation payments for actual moving costs; fixed payments for losses suffered; payments for replacement housing or business locations; relocation payments and loans to displaced businesses for certain costs related to the re-establishment of their business operations; and other similar relocation matters.

     (b)  The authority shall provide relocation assistance to persons, families, and businesses within the district that are displaced by private action; provided that assistance shall not include any form of direct monetary payments, except that the authority may make relocation loans to displaced businesses in accordance with rules adopted by the authority.  Temporary relocation facilities within or outside the district may be made available to those displaced; provided that those displaced by government action shall be afforded priority to these facilities.

     §   -15  Construction contracts.  The authority shall award construction contracts in conformity with the applicable provisions of chapter 103D.

     §   -16  Dedication for public facilities as condition to development.  The authority shall establish rules requiring dedication for public facilities of land or facilities, or cash payments in lieu thereof, by developers as a condition of developing real property pursuant to the state transit oriented development plan.  Where state and county public facilities dedication laws, ordinances, or rules differ, the provision for greater dedication shall prevail.

     §   -17  Sale or lease of redevelopment projects.  (a)  The authority may, without recourse to public auction, sell or lease for a term not exceeding ninety-nine years, all or any portion of the real or personal property constituting a redevelopment project to any person, upon terms and conditions as may be approved by the authority, if the authority finds that the sale or lease conforms with the state transit oriented development plan.

     (b)  In the case of residential projects or redevelopment projects, the terms of the sale shall provide for the repurchase of the property by the authority at its option, in the event that the purchaser, if other than a state agency, desires to sell the property within ten years; provided that this requirement may be waived by the authority if the authority determines that a waiver will not be contrary to the state transit oriented development plan.  The authority shall establish at the time of original sale a formula setting forth a basis for a repurchase price based on market considerations, including interest rates, land values, construction costs, and federal tax laws.

     If the purchaser in a residential project is a state agency, the authority may include as a term of the sale a provision for the repurchase of the property in conformance with this section.

     §   -18  Residential projects; cooperative agreements.  (a)  If the authority deems it desirable to develop a residential project, it may enter into an agreement with qualified persons to construct, maintain, operate, or otherwise dispose of the residential project.  Sale, lease, or rental of dwelling units in the project shall be as provided by the rules established by the authority.  The authority may enter into cooperative agreements with the Hawaii housing finance and development corporation for the financing, development, construction, sale, lease, or rental of dwelling units and projects.

     (b)  The authority may transfer the housing fees collected from private residential developments for the provision of housing for low- to moderate-income residents to the Hawaii housing finance and development corporation for the financing, development, construction, sale, lease, or rental of such housing within or without the state transit oriented development districts.  The fees shall be used only for projects owned by the State or owned or developed by a qualified nonprofit organization.  As used in this section, "nonprofit organization" means a corporation, association, or other duly chartered organization registered with the State, which organization has received charitable status under the Internal Revenue Code of 1986, as amended.

     §   -19  Hawaii state transit oriented development revolving fund.  There is created the Hawaii state transit oriented development revolving fund into which all receipts and revenues of the authority shall be deposited.  Proceeds from the fund shall be used for the purposes of this chapter.

     §   -20  Expenditures of revolving funds under the authority exempt from appropriation and allotment.  Except as to administrative expenditures, and except as otherwise provided by law, expenditures from any revolving fund administered by the authority may be made by the authority without appropriation or allotment of the legislature; provided that no expenditure shall be made from and no obligation shall be incurred against any revolving fund in excess of the amount standing to the credit of the fund or for any purpose for which the fund may not lawfully be expended.  Nothing in sections 37-31 to 37-41 shall require the proceeds of any revolving fund administered by the authority to be re-appropriated annually.

     §   -21  Exemption from taxation.  The authority shall not be required to pay assessments levied by any county, nor shall the authority be required to pay state taxes of any kind.

     §   -22  Annual report.  The authority shall submit to the governor and the legislature, at least twenty days prior to the convening of any regular session, a complete and detailed report of its activities.

     §   -23  Issuance of bonds.  The director of finance may, from time to time, issue general obligation bonds pursuant to chapter 39 in amounts as may be authorized by the legislature, for the purposes of this chapter.

     §   -24  Violations and penalty.  (a)  The authority may set, charge, and collect reasonable fines for violation of this chapter or any rule adopted pursuant to chapter 91.  Any person violating any of the provisions of this chapter or any rule adopted pursuant to chapter 91, for which violation a penalty is not otherwise provided, shall be fined not more than $500 per day and shall be liable for administrative costs incurred by the authority.

     (b)  The authority may maintain an action for an injunction to restrain any violation of the provisions of this chapter and may take any other lawful action to prevent or remedy any violation.

     (c)  Any person violating any provision of this chapter shall, upon conviction, be punished by a fine not exceeding $1,000 or by imprisonment not exceeding thirty days, or both.  The continuance of a violation after conviction shall be deemed a new offense for each day of continuance.

     §   -25  State transit oriented development district; prohibitions.  The authority is prohibited from selling or otherwise assigning the fee simple interest in any lands in the state transit oriented development district to which the authority in its corporate capacity holds title, except with respect to:

     (1)  Utility easements;

     (2)  Remnants as defined in section 171-52;

     (3)  Grants to any state or county department or agency; and

     (4)  Private entities for purposes of any easement, roadway, or infrastructure improvements.

     §   -26  Lease of projects.  (a)  The authority may, without recourse to public auction or public notice for sealed bids, lease for a term not exceeding ninety-nine years, all or any portion of the real or personal property constituting a project to any person, upon such terms and conditions as may be approved by the authority, if the authority finds that the lease conforms with the state transit oriented development plan.

     (b)  In the case of any sale of the leasehold interest in the project, the terms of the sale shall provide for the repurchase of the leasehold property by the authority at its option, in the event that the purchaser, if other than a state agency, desires to sell the property within ten years; provided that this requirement may be waived by the authority if the authority determines that a waiver will not be contrary to the state transit oriented development plan.  The authority shall establish at the time of original sale a formula setting forth a basis for a repurchase price based on market considerations including but not limited to interest rates, land values, construction costs, and federal tax laws.

     (c)  If the purchaser in a residential project is a state agency, the authority may include as a term of the sale a provision for the repurchase of the property in conformance with this section.

     §   -27  State transit oriented development districts; established; boundaries.  Five state transit oriented development districts shall be established.  The district boundaries are defined as a one-half mile radius around each of the following rail transit stations:

     (1)  University of Hawaii, West Oahu, transit station;

     (2)  Leeward community college transit station;

     (3)  Aloha Stadium transit station;

     (4)  Kalihi transit station; and

     (5)  Iwilei transit station.

     §   -28  State transit oriented development districts; development guidance policies.  The following shall constitute the development guidance policies generally governing the authority's action in the state transit oriented development districts:

     (1)  Development shall result in a community that permits an appropriate land mixture of residential, commercial, industrial, and other uses.  In view of the innovative nature of the mixed use approach, urban design policies should be established to provide guidelines for the public and private sectors in the proper development of this district.  Although the authority's development responsibilities apply only to the area within the district, the authority may engage in any studies or coordinative activities permitted in this chapter that affect areas lying outside the district, where the authority, in its discretion, decides that those activities are necessary to implement the intent of this chapter.  The studies or coordinative activities shall be limited to facility systems, residential and industrial relocation, and other activities with the counties and appropriate state agencies.  The authority may engage in construction activities outside the district; provided that the construction relates to infrastructure development or residential or business relocation activities; provided further, notwithstanding section 206E-7, that the construction shall comply with the general plan, development plan, ordinances, and rules of the county in which the district is located;

     (2)  Existing and future industrial uses shall be permitted and encouraged in appropriate locations within the district.  No plan or implementation strategy shall prevent continued activity or redevelopment of industrial and commercial uses that meet reasonable performance standards;

     (3)  Activities shall be located to provide primary reliance on public transportation and pedestrian facilities for internal circulation within the district or designated subareas;

     (4)  Major view planes, view corridors, and other environmental elements, such as natural light and prevailing winds, shall be preserved through necessary regulation and design review;

     (5)  Redevelopment of the district shall be compatible with plans of the surrounding areas;

     (6)  Historic sites and culturally significant facilities, settings, or locations shall be preserved;

     (7)  Land use activities within the district, where compatible, shall, to the greatest possible extent, be mixed horizontally, such as within blocks or other land areas, and vertically, as integral units of multi-purpose structures;

     (8)  Residential development may require a mixture of densities, building types, and configurations in accordance with appropriate urban design guidelines; integration both vertically and horizontally of residents of varying incomes, ages, and family groups; and an increased supply of housing for low- or moderate-income residents may be required as a condition of redevelopment in residential use.  Residential development shall provide necessary community facilities, such as open space, parks, community meeting places, child care centers, and other services, within and adjacent to residential development; and

     (9)  Public facilities within the district shall be planned, located, and developed so as to support the redevelopment policies for the district established by this chapter and plans and rules adopted pursuant to it."

     SECTION 2.  This Act shall take effect on July 1, 2038.

 

Report Title:

Transit Oriented Development

 

Description:

Establishes the State Transit Oriented Development Authority.  (HB626 HD1)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.